An Increase in Accounts Receivable Results in a Cash Inflow

question 116

True/False

An increase in accounts receivable results in a cash inflow on the statement of cash flows.

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Definitions:

Telecommunications Firm

A company that provides services in telecommunications, such as phone services, internet access, and cable TV.

Franchising

A method of doing business wherein a franchisor gives rights to a franchisee to operate a business or sell a product under the franchisor's brand in exchange for fees or royalties.

Contractual Agreement

A legally binding agreement between two or more parties that outlines the terms and conditions of a particular arrangement or transaction.

KFC Brand

A globally recognized fast-food franchise known for its fried chicken, originating in the United States and established by Colonel Harland Sanders.